Dell Boosts Share Price In Bid To Win 3Par
Under deadline pressure, Dell has boosted its offer to acquire storage company 3Par and says 3Par has accepted the higher bid.
Dell announced Thursday morning that 3Par has acceded to the new cash offer of $24.30 per share, which raises the total value of the bid to about $1.6 billion. Last week, Dell's initial offer stood at $18 per share, or about $1.15 billion (£737 million) a bid that 3Par's board had approved.
The increased offer came in reaction to Hewlett-Packard stepping in Monday with a bid of $24 per share. At that juncture, 3Par said that HP's unsolicited offer was likely to result in a "superior proposal" and gave Dell an ultimatum: three days to produce a better offer.
The initial agreement between Dell and 3Par included a provision to allow Dell to match competing bids, and the two companies have now signed an amendment reflecting the new offer price, according to Dell.
The Round Rock, Texas-based computer maker wants 3Par at least in part for its expertise in data management for multitenant cloud-computing environments. Virtualized storage arrays from Fremont, Calif.-based 3Par let companies buy storage capacity as needed.
Under the terms of the deal, 3Par will become a wholly owned subsidiary of Dell.
Dell said the amendment to the offer won't change the timing of the proposed acquisition, which it expects to close before year's end.
HP was not immediately available for comment.
On Thursday, however, HP made a separate cloud-related acquisition, picking up privately held Stratavia, which focuses on database and application automation, for an undisclosed sum.
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